A discussion of language policy making and its place in a nation's economic and social development uses Australia's experience as a case study. In particular, it reviews the factors such as multiculturalism and international relations that have led to the development of a national language policy, and examines the interim documents and the national policy expected to be released in early 1987. Particular attention is given to the role of language in economic development, a probable link between the decline in Australia's language education system and its economic security, and the role of improved language education in economic revival. The importance of a valid, reliable, and readily accessible means of language skills assessment in full and fair development of human resources is emphasized. Finally, the role of language education in Australia's present drive to develop education as an export commodity is considered, focusing on the response of one of the country's largest Colleges of Advanced Education to the export of education, the needs of the Asian-Pacific region, and the critical role of expertise in applied linguistics. (MSE)